Prices and visas scared the Russians off London Olympics

Tour operators have to admit: the Russians showed little interest towards the 2012 London Olympic Games that are about to open on July 27. The sales that have started pretty well at the end of the previous year, ended up following the worst scenario and not meeting the market players' expectations. During the Games the tourist flow has decreased by almost 200%, while the demand for right after the Olympics has grown abruptly.

The Euromonitor International Company forecasts that some 330 thousand foreign tourists will come to London during the Olympics, causing Heathrow airport's passenger flow to grow by 45%. The experts believe that the UK can receive 2% more tourists than last year. Most visitors are to come from near-by European countries: France, Germany and the Netherlands. A significant growth of the tourist flow is expected from the USA and Australia, not only because of the sporting events but due to the favorable currency exchange rate as well. At the same time, those who chose the UK for sightseeing or business purposes, this year will most likely have to change their plans because of price rises.

Among the things that scare the Russians off, the tour operators first of all name serious cash expenses and the need to obtain a visa. "The trip to the Olympics alone is not cheap at all. But one must get a visa, too. To do that an applicant must report to the British Consulate in person. It's particularly inconvenient for those who live far from visa application centers. For one, the Far East residents have to fly all the way to Novosibirsk in order to obtain a visa. And all this takes additional time and money" - says the director for sporting itineraries of Roza Vetrov-Mir Company Mr. Leonid Mosin.

For the Olympic period a package tour to London costs twice as much as a during "normal" one. Usually a week in British capital in a 5-star hotel goes for €1600-1700, while today the prices have reached as much as €3500. And this doesn't include visa, insurance and the admission to the Games. "An itinerary, including tickets to see the opening and closing ceremonies from the stadium's luxury box, will stand in around €10,000 per person. Fotunatelly regular tickets are not that expensive - €200 on average" - explains Ms. Anna Boikova, a manager of KMP Group.

According to her, the biggest interest towards the Games was shown by various sport organizations. At that, most of those who are actually going to the Olympics, have paid for their itineraries at the very beginning of the sales, when the prices haven't yet reached astronomical quantities. Those who came later not only faced higher prices, but also the visa issues. "If during a normal period you have to wait for your visa for 15 days, the Olympic Games turned it into a minimum of three weeks. Obviously, such a procedure sweeps last-minute travellers away from London" - Ms. Boikova pointed out.

The tour operators, Leonid Mosin reports, have been taking care not to get confirmed blocks for the Olympics, however some last-minute deals are still available on the market. "Should there be no visa issues, these offers might have been accepted, but the way things are, they are not likely to be sold" - he said. The expert is sure that the Olympics didn't win from being a "second" sporting event after UEFA Euro 2012. "Many Russians have already cheered for their team during the football competition in Ukraine and Poland. And they don't have neither the time nor the money for another trip" - assumes Mr. Mosin.

Not much was expected from the "Olympic" sales. But as a result we have what we have. Several hundred people, who have already purchased their tours, will go to London; the rest were detered by high prices and security restrictions, set in British capital for the Olympic period, that seriously complicate getting around the city" - deems deputy director general of BSI Group Mr. Alexey Popov. And since 90% of all Russian UK-bound tourists head to London, adds the expert, the demand for the destination has in general fell down.

The head of Britain's department of DSBW Tours company Ms. Irina Folomeyeva recalls a couple of times when customers cancelled their already planned trips to London after finding out that they coincide with the Olympics. She estimates that the demand for the UK has fallen down by 50% compared to the same period last year. That said, right after the Olympic Games' closing ceremony on August 12 the tour operator reports a significant lift in sales. Other travel companies confirm this tendency.